Financial Crime World

Ecuador Takes Steps to Combat Corruption, But Challenges Remain

Progress in the Fight Against Corruption

QUITO, Ecuador - In recent years, Ecuador has made significant strides in its fight against corruption. Notable legislative and regulatory developments have aimed at preventing money laundering and promoting ethical behavior.

According to Agustin Acosta Cárdenas, a partner at Paz Horowitz, a leading law firm in Ecuador, the Financial and Economic Analysis (FEA), a state regulator, has been instrumental in implementing broad regulations to combat money laundering. The law is clear and defines industries that must comply with certain aspects of control, with regular updates ensuring effectiveness.

Challenges Remain

Despite these efforts, corruption remains deeply entrenched in certain institutions, companies, and individuals. Acosta notes that changing this culture will require a long-term commitment from the government, private sector, and civil society.

  • The government is promoting certification for state-owned companies and some institutions under the ISO 37001 Anti-Bribery standard.
  • Chambers of commerce, such as the International Chamber of Commerce in Ecuador, are actively promoting compliance and ethical behavior among their members.

Organizations Contributing to Progress

Agustin Acosta Cárdenas attributes some of the progress to the efforts of organizations like Paz Horowitz, which has been recognized for its commitment to corporate responsibility and ethics. The firm’s motto, “Doing well by doing it right,” reflects its focus on quality over size and its willingness to take on clients with strong business ethics and a commitment to social responsibility.

Challenges Ahead

Despite these advances, challenges remain. Esteban Vivero, another attorney at Paz Horowitz, notes that legal and cultural issues continue to hinder anti-corruption efforts in Ecuador. For example, some individuals still view corruption as an acceptable means of achieving success.

Overcoming Obstacles

To overcome these obstacles, Ecuador will need to continue promoting transparency, accountability, and ethical behavior across all sectors. By doing so, the country can build a stronger foundation for its economy and society.

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